- CSE Global (SGX:544)'s FY22 revenue grew by 19% y-o-y to S$557.7m, in line with estimates. The infrastructure segment was the largest driver of revenue growth (+52.8% y-o-y), with the bulk of the increase coming from Australia and the Americas.
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- In terms of proportions, the infrastructure segment has steadily grown from 30.6% in FY21 to 39.3% in FY22, a result of CSE Global’s strategy to diversify into the non oil and gas segments. CSE Global also managed to reduce the energy segment’s contributions from 59.2% in FY21 to 49.6% in FY22.
FY22 net profit declined 68% y-o-y to S$4.7m due to one-off restructuring costs and cost overruns, significantly below expectations.
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- In addition, CSE Global also incurred restructuring costs of S$1.3m in relation to a business division in the US. Supply chain disruptions were another key reason for weak earnings, as it lengthened project execution time frames, which led to increased project execution costs. As a result, net margin declined from 3.2% in FY21 to 0.9% in FY22.
FY22 new order intake is robust at S$808.4m, +74.9% y-o-y.
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